Internal Service Funds Typically Are Not Included in the Governmental

question 4

True/False

Internal service funds typically are not included in the governmental activities column on the government-wide statements.

---

Definitions:

Higher Risk

Refers to the increased likelihood of experiencing a loss or encountering a negative outcome in an investment or other business activity.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company would consider in order to pursue the project.

Accounting Rate of Return

A financial ratio that measures the expected profit from an investment compared to its initial cost.

After-Tax Net Income

The profit remaining after all operating expenses, including taxes, have been deducted from total revenue.